Disney Reports Lower Income, Change in Streaming Philosophy

A scene from the Disney film Tangled. Courtesy Walt Disney Animation Studios

A scene from the Disney film Tangled. Courtesy Walt Disney Animation Studios

While this partnership with ESPN is a strong move on Disney's part, one analyst, Brian Weiser, pointed out that, "Disney will have to be careful that it doesn't transfer too much sports programming from its TV channels to the app. Getting the balance wrong could upset cable companies and weigh on the price they pay Disney for ESPN". That's a lot of entertainment to mine with over 70 years of movies and TV shows the company can now put into its own Mouse House.

Disney will create a separate streaming service for sports, as one category, and movies and TV, as another category.

Bob Iger said that if a movie is Pixar or Disney-branded, it will probably appear exclusively on the new service - including shows and movies made specifically for the service.

Disney said the new services would be based on technology provided by video-streaming firm BAMTech, in which the media company is increasing its stake to 75 percent by paying $1.58 billion.

Of course, one of the most compelling brands for a direct-to-consumer product is Disney, and to that end, we will launch a Disney-branded streaming service in 2019, which will be unlike anything else in the market.

Disney will also make a significant investment in an annual slate of original movies, TV shows, short-form content and other Disney-branded exclusives for the service.

Last August, Disney acquired a 33% stake in that company, which is a spinoff from Major League Baseball Advanced Media, for $1 billion.

As a replacement for Netflix, Disney introduces a new platform which will serve as a home for all films of Disney as well as its future movies.

Currently, BAMTech designs, develops, and delivers direct-to-consumer streaming services for partners including HBO Now, MLB, NHL, MLB, PGA Tour, WWE Network, and Riot Games' "League of Legends".

Disney is planning to start a video streaming service similar to Netflix, and plans to soon pull all its content out of the latter.

The new platform will premiere in time for Toy Story 4, the sequel to Frozen and a live-action remake of The Lion King, the company said in a statement. That deal has spawned Daredevil, Jessica Jones, Luke Cage, Iron Fist, and the upcoming The Defenders as well as The Punisher.

Moana - Disney said "You're Welcome" when it gave Netflix Moana, but evidently being polite didn't go very far.

"The more content that consumers can obtain without a multichannel video subscription, not to mention more and more content without advertising, the less interest they will have in subscribing to the big multichannel video bundle", he wrote. Netflix shares fell on the news, but the response is most likely a knee-jerk reaction.

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